Morgan Stanley analyst Adam Jonas upgraded shares of Tesla (ticker: TSLA) to Buy from Hold, Sunday. His price target went to a Street high of $400 a share, up from $250 a share. He calls Tesla his top pick.
“The autonomous car has been described as the mother of all AI projects,” wrote Jonas. “In its quest to solve for autonomy, Tesla has developed an advanced supercomputing architecture that pushes new boundaries in custom silicon and may put Tesla at an asymmetric advantage in a $10 trillion total addressable market.”
Ten trillion is a huge number. It’s the potential annual revenue from robotaxi sales when, and if, cars truly drive themselves. Tesla is investing billions using AI computing to train its self-driving software to make robotaxis a reality and Tesla calls its custom computing platform Dojo, Barron's reported.